DrugMax.com, Inc. Announces Fourth Quarter and Year-End Financial Results
LARGO, Fla.--(BW HealthWire)--June 15, 2001--DrugMax.com, Inc. (Nasdaq:DMAX - news) a full-line wholesale distributor of pharmaceuticals, over-the-counter products, health and beauty aids and nutritional supplements, today announced financial results for the fourth quarter and fiscal year ended March 31, 2001.
Revenues were approximately $177.7 million for the year ended March 31, 2001, a 744 percent increase over the $21 million for the fiscal year ended March 31, 2000. Revenues were approximately $55.2 million for the fourth quarter ended March 31, 2001 compared to $13.8 million for the fourth quarter ended March 31, 2000, a 300 percent increase.
The Company reported a net loss for the year ended March 31, 2001, of approximately $7.8 million or ($1.22) per share, which included a pre-tax $4.4 million ($.69 per share) charge for the non-cash write-off in the fourth quarter for impairment of assets primarily associated with the acquisitions of Desktop Corporation and VetMall, Inc., compared to a net loss of $2 million or ($.51) per share for the fiscal year ended March 31, 2000.
The net loss for the fourth quarter ended March 31, 2001, was approximately $5.1 million or ($.78) per share, which included a pre-tax $4.4 million ($.69 per share) charge for the non-cash write-off for impairment of assets primarily associated with the acquisitions of Desktop Corporation and VetMall, Inc., compared to a net loss of approximately $1.3 million or ($.22) per share for the fourth quarter ended March 31, 2000.
``The rapid growth in revenues and the improvements in key ratios were unfortunately offset by the impaired value of certain assets associated principally with the acquisitions of Desktop Corporation and VetMall, Inc.,'' said Ron Patrick, Secretary and Chief Financial Officer. ``Management is optimistic that the pharmaceutical industry will continue its double-digit growth and believes that DrugMax.com's recent mergers in its core business will drive the revenue and earnings of the Company in fiscal year 2002. DrugMax.com's business plan emphasizes expansion of its core business, corporate branding and gross margins. We are confident that our focus will continue to improve cash from operations, thereby funding our growth and return on investment to our stakeholders.''
William LaGamba, President and Chief Operating Officer said, ``We remain very positive that DrugMax.com's revenue growth will continue outpacing the industry average in future quarters. With our solid infrastructure in place, our commitment to customer service and the growth of independent pharmacies throughout the United States, we are confident that DrugMax.com is poised to deliver strong results moving forward.''
Today, the Company also announced that its Board of Directors and a majority of its shareholders have agreed to change the name of the Company to DrugMax, Inc. The name change is expected to become effective in August 2001.
``Even though the e-commerce division is a strong component of our business, we felt the DrugMax, Inc. name is more consistent with how our business model has developed over the last 12 months,'' stated LaGamba. |
